I'm not entirely sure what will happen and how USDT is really used right now. Although it's plausible that USDT is used to inflate prices, but I believe there is also an alternative.

It seems USDT is printed at times when BTC price goes down. It is possible that a lot of poeple want to exchange BTC or other cryptos back to USDT at time like these, hence the demand for USDT rises whenever BTC price is going down and new USDT is printed. I really hope it's this scenario and not the other one.

But I imagine that at some point the USDT scam will come to an end. There is just no scenario in the world there I believe that they have enough USD for each USDT and when that happens people holding USDT will lose a lot of money. I hope the extend of it will not have a big influence on the rest of the market, but if I had USDT I would try to get rid of it asap.